Which of the Following Is the Correct Order of Subtotals

question 260

Multiple Choice

Which of the following is the correct order of subtotals that appear on a multi-step income statement?

• A) Operating income, Gross profit, Net income
• B) Gross profit, Net sales revenue, Net income
• C) Net income, Operating income, Net income
• D) Gross profit, Operating income, Net income

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Definitions:

Molasses

is a thick, dark syrup produced as a byproduct of refining sugar cane or sugar beets into sugar, often used in baking and cooking.

Intermediate Product

An intermediate product is a product that undergoes further processing before becoming a finished good.

Processed Further

Refers to additional operations or steps that raw materials, goods in process, or finished goods undergo to increase their value.

Industrial Fiber

Industrial fiber refers to synthetic or natural fibrous materials used in manufacturing for their durability and performance attributes.